Tax Free Renaissance Zones
What -Renaissance Zones are parts of Lansing which are virtually free of all state and local taxes for businesses located within their boundaries for up to 15 years. These zones are established to promote economic development throughout the state. There are over 150 geographic areas in Michigan that are designated as Renaissance Zones. The City of Lansing currently has one active Renaissance Zone and is one of a select few cities in Michigan with ability to designate additional zones. Typically new zones are reserved for major investment and job creation development projects.
Who- Any business operating, or resident living within a Renaissance Zone enjoys the tax benefits from the Zone. To stay eligible for these benefits, both businesses and residents must remain current on any taxes that are not exempted by the Renaissance Zone.
Why - Most state and local taxes are abated in the Renaissance Zones for 15 years. The tax benefits are phased out at 25% increments during the Zone's final three yearsof existence. Property owners are still responsible for property taxes levied to pay for local bonded indebtedness, school sinking funds, and special assessments. Property owners not residing in the zone must also pay personal income taxes. The following state and local taxes are abated for businesses and residents located in a Renaissance Zone:
- Local Real Property Taxes - General property taxes on land and buildings are nearly 100% abated
- Local Personal Property Taxes - These general property taxes are nearly 100% abated for the business' personal property that is located in the Renaissance Zone.
- School Property Taxes Abated - Personal and real property taxes for schools are 100% eliminated in the zone.
- Michigan Business Tax (businesses only) - A tax credit is allowed against the Michigan Business Tax (MBT) for business activity attributable to the Renaissance Zone.
- Local Corporate Income Tax (businesses only) - City corporate income taxes, if applicable in the zone, are 100% abated.
- State Personal Income Tax - Individuals living in a Renaissance Zone are exempt from paying the state personal income tax.
- Local Income Tax - Individuals living in a Renaissance Zone are exempt from paying the local personal income tax.